Navy Federal's Home Affordable Refinance and Modification Programs

*Important Update As Of 7/2/09

The eligibility guidelines for the Making Home Affordable Program have recently been expanded to allow more homeowners the opportunity to refinance. Previously, under the Making Home Affordable Program for Fannie Mae and Freddie Mac loans, only homeowners seeking loans with a maximum LTV of 105% could be considered for this program. Now borrowers with LTVs up to 125% may be eligible to refinance their mortgage loan. Please continue to visit our website as we obtain additional information and make updates.

Navy Federal's Home Affordable program has two parts:

1. Navy Federal's Home Affordable Refinance program, and
2. Navy Federal's Home Affordable Modification program

The information below—as well as our frequently asked questions—will assist you with this process.

1. Navy Federal's Home Affordable Refinance Program may be available:

• To homeowners who have not been late on their monthly mortgage payment in the last 12 months
• For the home you are currently living in
• For first mortgages where loan-to-value ratio is between 80% - 125%*

If eligible, homeowners may have the opportunity to refinance their loan at prevailing rates. If your first mortgage is less than 125% of the value of the property and you would still like to submit your information, please visit our self-assessment tool. Good news, too: This program is available through June 2010, so you do not need to act immediately.

* Sites such as www.zillow.com can assist with finding an estimate of the current value of your home. Navy Federal cannot guarantee the accuracy of these values. Actual value would have to be substantiated by an appraisal.

2. Navy Federal's Home Affordable Modification Program

This program is designed to help homeowners avoid foreclosure. To be eligible for this program, you must go through a screening process to determine if you have a significant financial hardship.

The borrower must have one of the following hardships to qualify for this program:

• A reduction or loss of income
• Change in household financial circumstances
• Increase in expenses, and excessive monthly debt payments
• Material change in circumstances

Navy Federal must ask information about the items listed below. Each of these elements must be verified through documentation.

• Monthly gross income of your household, including recent pay stubs or documentation of income
• Your most recent income tax return
• Information about any equity loan (also known as a second mortgage) on your home
• Payments on each of your credit cards
• Payments on any other loans
• Other monthly obligations

After the screening process, "at-risk homeowners" may be eligible for a loan modification. This program will be available through June 2010.

Please visit our self-assessment tool to give you a better understanding of your eligibility for either of these programs. After submitting the requested information using the self-assessment tool, a mortgage specialist will contact you. Due to the large volume, this process may take up to 30 days from when we receive your information. To view frequently asked questions, click here.

Due to the anticipated complexities involved with the government guidelines, our Call Center and Branch Office teammates will not be able to provide any more information than what is published here on our website. Please continue to visit our website for additional updates.